A sunset ride on the Erg Chebbi Dunes, in the Sahara, Morocco.

Hi Everyone:

It’s been difficult to stay in touch lately and I hope you are all doing well. Here’s a recent pic from my travels from the Erg Chebbi Dunes, in the Sahara, Morocco. It was a beautiful sunset but I don’t mind saying I was a little afraid of this camel who’s name was Fred – odd but there you have it! Here’s a question I received recently:

Dear Ben Spec,

I recently had a change to my benefits, and I am concerned about my Medicaid. I was getting SSI and a DAC payment concurrently. When my father passed away, my payment of $650 increased to $975. I am working and getting paid about $150 each month.

I was told that I would lose my Medicaid so I should apply at the county economic support office. I did this, but I was not put into a Special Status Medicaid Category as I had assumed I would. The office told me it has something to do with my shelter costs. My mother no longer makes me pay rent because I stopped receiving SSI. I was under the impression that paying shelter costs wouldn’t affect my Medicaid eligibility because it is no longer tied to SSI. Can you please explain to me why I am not eligible for EBD Medicaid with the DAC Special Status Disregard?

I have been enrolled in MAPP, and it’s free. This is great and I don’t mean to complain, but I am still confused about not being placed into the DAC Special Status Medicaid category.

Yours truly,
Sara of Melrose, WI

Dear Sara,

I am so glad you contacted me with this question. The Special Status Medicaid programs can be a bit trickier than they appear. Many people believe that someone is automatically eligible for Special Status DAC Medicaid if disregarding the DAC payment makes the person eligible for SSI. There is a little more to it.

First, an individual must have lost eligibility for SSI because of a DAC payment. The increase in your DAC payment caused you to lose eligibility for SSI, so you do meet this eligibility factor.

The second factor in eligibility is your countable income. Your DAC payment increase is disregarded because you were once getting concurrent benefits of SSDI and SSI at the same time. The disregard is applied to your full SSDI payment. After that, your countable income can be found.

Finally, your countable income is compared to your Personal Income Limit and/or the Med Needy Income Limit. If your countable income is below either of these limits, you are going to be eligible for this type of Medicaid. You will also be automatically eligible for the Medicare Savings Program, QMB.

Taking a glance at the information you sent, it looks like you do not have any shelter costs. This may be causing your Personal Income Limit to be lower than your countable income. Your countable income is definitely higher than the Med Needy Income Limit, so you wouldn’t be eligible through the use of that test. Again, from the information you sent, it looks like MAPP is your best option at this time.

If you paid toward shelter costs, there is a chance that you would be eligible for the Special Status DAC Medicaid. You can contact your local Economic Office or benefits specialist to find out more information.

Off to new adventures!
Ben

Manarola, Italy

Hello Friends

I’m checking in from one of the most beautiful places I have ever been – Manarola, Italy. I received the following question about Childhood Disability Benefits (DAC).

Dear Ben,

Several years ago my father died when I was 19 and I started to receive DAC benefits (I think they’re officially Childhood Disability Benefits) based on his record. But when I got married three years ago, the benefits stopped. I just got divorced and was wondering if I could start up the DAC benefits again on my father’s record since I’m no longer married. I’m still disabled and haven’t been able to work. Also, my mother who is 63 has been working all her life but is retiring and will be applying for retirement social security soon – can I get anything because she’s retiring?

Bruce
Bosstown, WI

Manarola, Italy

Dear Bruce,

Unfortunately, you cannot receive benefits again on your father’s record. Re-entitlement on the same earnings record for a DAC is not possible after a marriage that ended by death or divorce. (POMS RS 00203.015A)

However, it sounds like you may be able to be entitled as a DAC on your mother’s record once she starts receiving Social Security retirement benefits. If a former DAC beneficiary is not married, she/he may be newly eligible on the other parent’s record because the rules for initial entitlement rather than re-entitlement apply. (POMS RS 00203.020)

Also note that if a DAC marries a person who is entitled to a Social Security Title II benefit (retirement, survivor, auxiliary, or disability but not child benefits for someone under 18), DAC benefits would continue. (POMS RS 00203.035A3)

So be sure to contact your local Social Security office when your mother applies for retirement to start the disability application process for yourself.

Ben

Normandy, France

Hi Ben,
I’ve been getting SSDI based on my own work for several years now and I’ll be coming up on the normal retirement age, 66, in a couple of years. I was wondering if my disability benefit amount will change once I hit retirement age?

Otto
Moquah, WI

Dear Otto,

Someone in your situation cannot receive Social Security disability benefits in addition to or instead of retirement benefits. Once a person is over the full retirement age (now 66), he or she cannot be eligible for Disability Insurance Benefits (DIB.) A person can only receive DIB if younger than the full retirement age and no longer able to do substantial work because of a disabling condition.

For those receiving DIB when turning full retirement age, the payments become retirement benefits. The benefit amount is the same as before, but the rules regarding work, Substantial Gainful Activity (SGA), and medical reviews no longer apply since the payments are technically no longer disability benefits. Similarly, Widow(er) Disability Benefits (WDB) essentially become Widow(er) Benefits when the widow(er) turns full retirement age.

One way to look at DIB or WDB payments is as a form of early retirement benefits intended to tide a person over until reaching full retirement age when those payments automatically become retirement benefits.

Note, however, that Childhood Disability Benefits (often called Disabled Adult Child or DAC benefits) are different. Those who are entitled to DAC benefits continue to receive them past full retirement age as long as they remain disabled. It is unlikely a Childhood Disability Beneficiary would ever medically recover after full retirement age, but the disability rules regarding work, SGA, and work incentives still apply.

Ben